This Christmas is going to be biggest ever for low and no-alcohol drinks, states a recent report citing figures and trends from supermarket Tesco.
Data from Tesco shared exclusively with The Mirror found the supermarket is expecting to see more demand than ever for the likes of Lucky Strike, Kylie Minogue's 0% wine and Captain Morgan Alcohol Free Rum with sales soaring by as much as 70 per cent.
The supermarket stated that no and low beer has been the biggest winner this year with shoppers now buying in multi-pack sizes rather than single bottles or cans - the equivalent in litres of a 20 per cent rise on 2023. Now, it is predicting demand in the four-week run up to Christmas to grow by 15 per cent on the same period last year with Lucky Saint, Heineken, Peroni, and Athletic among the most popular brands.
No and Low Spirits also saw demand at Tesco leaping by 20 per cent year-on-year. Predicted best sellers for Christmas, based on early demand, are Captain Morgan Alcohol Free Rum 70cl; Whitley Neill Rhubarb and Ginger 0% gin; and its own label Pink Gin and Lemonade 0.5% 4-pack.
No and Low Wine also saw strong growth of more than 10 per cent, with demand for Kylie Minogue’s Sparkling 0% Rose already nearly 70 per cent on 2023 sales.
Overall, Brits created a record demand for no and low alcohol drinks this year with sales rising through the year and not just for the traditional Christmas and Dry January occasions - the summer's Euro 2024 tournament in particular saw a peak. During the month-long competition Tesco saw demand for no and low beer soar even higher than for Dry January.
Karen Tyrell, CEO of the charity Drinkaware said, "The growth in the sale of no and low-alcohol drinks in this past year is really positive. Our research shows UK drinkers are choosing them more and more, with around a third of people now using them to moderate their drinking."
Tesco no and low drinks buyer David Albon said, "It’s taken a while but we’re seeing a new consumer confidence for no and low drinks in general whereby shoppers are now more trusting in the quality of the drinks they can buy and the brands available to them.”
Brits are increasingly leaning towards cooking from scratch and are ditching ultra processed food, thus embracing a much simpler approach to their diet, a recent report has stated.
According to a recent report from John Lewis Partnership released on Friday (17), supermarket Waitrose has reported that it’s back to basics for many in 2025 due to a growing awareness around ultra processed foods, with many turning away from low-fat, highly processed products in favour of less-processed, whole food ingredients.
Whole milk and full-fat Greek yogurt sales are up 11 per cent and 21 per cent compared to skimmed milk and Greek style yoghurt a year ago.
Block butter sales are up by +20 per cent as compared to dairy spreads while brown rice is seeing +7 per cent more sales as compared to white rice.
The report adds that sourdough bread sales are up by +20 per cent as compared to white bread while full fat Greek yoghurt recorded +21 per cent more sales than Greek style yoghurt.
Over the past 30 days, searches on Waitrose website whole food searches soared with ‘full fat milk’ and ‘full fat yoghurt’ skyrocketing 417 per cent and 233 per cent.
The shfit reflects the wider growing awareness of effects of ultra-processed foods, thanks in no small part to Dr Chris van Tulleken’s bestselling book Ultra-Processed People and its continued momentum in 2024 and into 2025.
His eye-opening, rigorously researched account of ultra-processed foods and their effect on our health turned many people towards cooking from scratch, with unprocessed or minimally processed ingredients.
Maddy Wilson, Director of Waitrose Own Brand comments, “There’s been a lot of bad press around so-called ‘healthy’ products which aren’t nutritious and don’t taste great, however the growing awareness of ultra processed food in our diets has seen many customers seeking the basics and embracing a much simpler approach to their diet.”
Waitrose Food & Drink report released last year highlighted that 54 per cent of those surveyed proactively avoid processed foods.
Consumer confidence dropped marginally in the last quarter of 2024, shows a recent industry report, suggesting concerns around disposable income and prices of essentials remain though consumer confidence is expected to recover in 2025.
According to the Deloitte consumer tracker released today (20), this is the first time since 2022 that confidence has stalled, although confidence varied in different areas examined by the survey.
Consumer sentiment towards personal debt rose by six percentage points, although this was not enough to compensate for falls in other measures. There was a four percentage point drop in confidence about household disposable income and a 14 percentage point drop in confidence about the UK economy.
Almost half (42 per cent) of consumers said they spent more on Christmas this year, but most (54 per cent) put this down to higher prices.
The Deloitte survey is based on responses from 3,200 UK consumers aged over 18 and was taken between 3 and 6 January.
Céline Fenech, consumer insight lead at Deloitte, said, “While many consumers appear to be feeling better about paying debts or borrowing following the cuts to interest rates, concerns around disposable income and prices of essentials remain.
“Consumers continue to look for value and make compromises following a once-in-a-generation surge in costs that has diminished consumers’ spending power.
“Many consumers continue to compare today’s higher prices to those of pre-pandemic, regardless of the rate of inflation falling.”
Fenech added that despite the fall in confidence overall, Deloitte expected consumer confidence to recover in 2025.
Ian Stewart, chief economist at Deloitte, said, “Despite a challenging start to the year, we expect to see growth coming back over the summer, with interest rate cuts, rising real incomes and buoyant government spending helping drive the recovery.
“For 2025 as a whole, we expect UK GDP growth to come in at around 1 per cent, a rather better outcome than last year.”
Among the survey’s findings were that two in five consumers (40 per cent) said they did their Christmas shopping before December, which could have been a tactic to spread the cost of the festive season.
Over a third agreed that they bought more gifts (37 per cent) on discount and more food (43 per cent) using promotions and loyalty cards discounts.
About 52 per cent of those surveyed greed they were generally more frugal and careful this Christmas, while half (50 per cent) agreed they consciously cut down on any luxuries.
Oliver Vernon-Harcourt, head of retail at Deloitte, said, “As many grapple with an inflation hangover, consumers likely need more time to digest the volatility and uncertainty of the last few years.
“Consumer recovery this year will depend on what happens with inflation, especially in the more essential categories like food.
“With our research showing that 80 per cent of consumers still expect prices to go up further in 2025, consumer demand is likely to remain subdued while things settle in the first half of the year.
“Beyond that, with factors such as the rise in the minimum living wage, more public spending, easing monetary and fiscal policies – combined with consumer confidence hopefully continuing to recover – we should see demand improving.”
Trust in UK-produced food has reached its highest level since 2021 following three years of falling confidence in standards.
Most (75 per cent) adults now say they trust food produced in the UK. This is a rise from 71 per cent in 2023, although still below the level of trust felt by shoppers in 2021 (81 per cent).
The figure rises to 91 per cent when consumers are asked whether they trust food "exclusively produced" within the UK.
Significantly, more people now say they trust UK food more than NHS care, water from the tap, or any other core service or utility.
A clear majority (85 per cent) of respondents to the survey say they trust the country's farmers, compared to just 9 per cent of whom express distrust.
Animal welfare remains the most important aspect of food production for consumers, and 72 per cent of adults say farmers follow good animal welfare standards.
And a majority of respondents (72 per cent) say that assurance labels were a reason to trust food, while 77 per cent say that labels showing where food comes from helps build trust.
The findings, which draw on research from over 3,000 UK consumers, form part of Red Tractor’s annual Trust in Food Index. First produced in 2021, it is designed to provide the most comprehensive assessment of consumer attitudes to food in the UK.
Jim Moseley, CEO of Red Tractor, said the past four years had been 'brutal' for the food and farming industry. Farmers have particularly faced a series of challenges, such as severe weather events, poor harvests, and the prospect of rising taxes on the horizon.
"Not since the foot-and-mouth crisis over 20 years ago has the food industry had so much to contend with," he said.
But this year’s findings will likely give a boost following years of rising costs and higher prices for consumers.
Meanwhile, the importance of the Red Tractor logo when choosing food has risen to its highest level in the four years since the Trust in Food Index began.
Moseley concluded, "It should be a source of huge pride to everyone involved in food production in the UK that food is now more trusted than water or any other basic service we rely on every day
"Despite the extremely challenging environment, farmers’ efforts to work to some of the highest standards in the world has played a significant role in driving a resurgence of consumer trust in UK food."
Convenience retail continues to remain a robust sector despite rising crime and state intervention on unhealthy products, states leading property adviser Christie & Co today (16) in its annual report.
Christie & Co's report "Business Outlook 2025" reflects on key market activity, trends and challenges of 2024 and forecasts what 2025 might bring across the industries, including the convenience retail sector.
The report notes that in 2024 retail deal activity continued in the same strong vein as in H2 2023, and convenience retail remains a robust sector driven by need, providing solid investment opportunities. As such, Christie & Co's retail price index rose by 7.3 per cent.
Despite operational challenges from rising crime and state intervention on unhealthy products, there was a strong demand for opportunities.
According to Christie & Co 2024 data revealed in the report, there was a 20 per cent increase in the number of stores sold compared to 2023, with an average of ten viewings per sale.
Ever-increasing overheads will continue to present challenges for store owners and are causing the multiples to increase the turnover threshold for profitable stores.
Christie & Co notes that, as costs rise, continued divestment from corporate multiple retailers is expected and these divestments will inevitably present new opportunities for independent buyers in 2025.
The report also outlines Christie & Co's market predictions for the year ahead
Retailers will continue to face rising costs as a result of measures outlined in the Autumn Budget, and this will affect wages in particular.
This has the potential to cause inflation. However, as convenience stores are needs-driven, consumers will accept price rises or seek out value for money, states the report.
Retailers may be less inclined to hire more staff because of increasing wages and taxations, as announced in the Budget.
Due to increasing Government restrictions on unhealthy products, suppliers will have to adapt their offerings to fit requirements or sellers will have to evolve their product range, the report added.
It is unlikely that there will be a reduction in demand for sites, but purchasers will most likely factor cost increases into their offers while divestments from corporate multiple retailers are expected to continue as they continue to see costs go up and "tail end" stores may struggle, states the report.
Steve Rodell, Managing Director of Retail and Leisure at Christie & Co comments, “We are in the very fortunate position to be at the forefront of convenience retail business-to-business transactions, and we have worked very hard to become the market leaders.
"This is now a valuable position to be in, as other areas of retail, including much of the high street, struggle with internet shopping and multiple channels of competition.
"Convenience retail remains a needs-based sector, and as long as retailers listen to customers and satisfy local demand there is a good future for the convenience store.”
"Cultural entropy" costs retailers an estimated £10.8 billion annually, making up almost a tenth of the £122 billion lost annually across UK industries due to workplace fear, amounting to 5 per cent of the nation’s GDP, states a recent report.
According to research by Katharine Williams, founder of Neema, in terms of economic loss, the retail sector ranks fifth, sitting below healthcare, manufacturing, real estate and construction and financial services.
The rise of e-commerce, automation in supply chains, and data-driven decision-making has transformed operational models.
This shift has increased pressure on leadership to adapt quickly, often leading to fear-based behaviours amplified by job security concerns, evolving customer expectations, and the challenge of balancing technological innovation with workforce retention, states the report.
Defined by the Barrett Values Centre, cultural entropy is a measure of unproductive and fear-based leadership behaviours such as blame, bureaucracy, and mistrust, which divert critical resources and energy away from productive activities, hampering revenue growth and impacting employee engagement across various sectors.
In terms of cultural entropy, by comparison to other sectors retail performs quite well with an entropy score of 17 per cent, sitting below sectors such as utilities and healthcare which have greater levels of fear-based behaviours.
The study finds that although good leaders don’t intentionally foster fear-based cultures, many unwittingly do. Despite over 50 per cent of UK organisations offering leadership development programmes, between 15 per cent and 22 per cent of all leadership behaviour remains fear-based.
This is because, like all humans, 90-95 per cent of a leader’s thoughts and behaviours are driven by their subconscious processing—which is often fear-based and shaped by emotional triggers, habits, and learned responses.
As a result, even highly experienced, well-intentioned leaders operate with fully deliberate, intentional thought only 5-10 per cent of the time, making them susceptible to automatic responses that may not align with either their own or the company’s values.
Williams said, “I see this as positive news for CEOs within retail. For those who have been left dissatisfied by the results of costly, time-intensive cultural interventions and leadership development programmes, there is a bright light at the end of the tunnel.
"Cultural Entropy costs will drastically reduce as leaders increase awareness of the subconscious patterns and habits that fuel fear-based leadership behaviours.
"As a coach, I use neuroscience-backed techniques, honed intuition, and rigorous diagnostics to help clients access and integrate what’s hidden in their subconscious. Integrating the subconscious with the conscious makes the invisible, visible – and what you can see you can address. At Neema, we call this ‘Integrated Leadership’.”